7 Strategies for True Business Growth
Achieving business growth is a top priority for many business owners and professionals. In fact, case studies show that 53% of American small business owners planned to grow business operations in 2018.
However, only around 66% of companies are still in business after their first two years. At five years only around 50% are still in business and just 33% of companies are still operating at the ten year mark.
Without utilizing concrete business growth strategies it can be difficult, if not impossible, to achieve either short term or long term business success. 7 strategies for business growth include-
1. Understand Growth Strategy Types
The Ansoff Matrix defines 4 unique growth strategy types for business professionals to consider implementing in their own operations. The main 4 growth strategy types are-
- Market penetration
- Market development
- Product development
The main difference between these strategy types is between using existing products and existing markets as opposed to introducing new products or pursuing new markets. The 4 growth strategies incorporate these market and product factors combining in different ways.
Market penetration focuses on increasing sales to existing customers utilizing already existing products. Product development focuses on the introduction of new products to an existing market.
Market development focuses on new market entry utilizing existing products. Lastly, diversification focuses on entering new markets through product line expansion including new products introduced.
2. Target Growth Area
A common mistake that both small business and large corporation owners make is not clearly defining what business growth actually entails for their specific enterprise.
Instead of using the phrase business growth' as an umbrella statement or buzzword, concerted efforts and planning must be undertaken in order to improve the likelihood of both short term and long term business growth.
Identifying specific areas for business growth may look different for different corporations, largely dependent on the unique needs and objectives that the company has. Examples of strategic growth initiatives could include international market expansion and online business establishment.
Note-: It is very likely that a company growth strategy will include many different specific objectives. Sometimes these objectives will be complementary to one another, such as customer service improvements leading to an increase in customer base retention.
3. Perform Market Research
Market research is a worthwhile investment for every business to consider. Performing market research can help business professionals determine if their established growth strategy is both achievable and profitable.
Although identifying that a growth strategy is not realistic or worth the investment during market research initiatives may initially feel discouraging, it will likely avoid disastrous short term and long term consequences.
Business professionals can go back to the drawing board and draft a better growth strategy instead of wasting resources on attempting to implement an unrealistic strategy.
Market research techniques range from social media customer experience surveys to product development focus groups. When establishing deadlines, budgets, and objectives, market research is an invaluable reference point.
4. Growth Goal Establishment
When establishing growth goals it is wise to use the SMART goals model. SMART is an acronym that stands for specific, measurable, achievable, relevant, and time bound.
If a growth goal does not meet the SMART goal criteria it may not be a good investment of company resources.
Remember-: Carefully review relevant market research findings before setting growth goals.
5. Create Detailed Plan
Composing a detailed and comprehensive growth strategy plan will increase the likelihood of business success exponentially. Not only will a growth strategy plan assist in educating team members regarding set objectives, but additionally should aim to cultivate a universal buy-in from staff members.
Make sure the plan has detailed deadlines, action items, and resources listed. Additionally, the delegation of tasks and responsibilities should be established in the plan.
6. Allocate Resources
Proper resource allocation is essential to business growth success. Resources to consider range from financial capital to software needs.
Funding requirements should be listed in the internal budget. Software and other technological resources should be considered for their potential to smooth and speed up the growth process.
Additionally, consideration regarding contracting or hiring professionals to help business developments and growth efforts should occur at this stage. Third party consultants and experts can supply critical company growth and marketing strategy guidance.
7. Execute Plan
Execution of the company growth plan should be much easier after dedicating considerable resources while planning and preparing. During this stage, clear communication is absolutely essential to avoid preventable costly misunderstandings or mishaps.
The plan execution stage is a great opportunity to compare forecast accuracy and make any adjustments necessary for future company growth objectives.
- Main objectives of business growth strategies range from market share increases to current market optimization.
- Both small businesses and new business storefronts can benefit from growth strategy implementation.
- Successful growth potential is markedly increased by utilizing strategies ranging from target market clarification to resource allocation in order to help business growth.